Which of the Following Statements Describes Why a Properly Designed

question 1022

Multiple Choice

Which of the following statements describes why a properly designed and executed audit may not detect a material misstatement due to fraud?

• A) Audit procedures that are effective for detecting an unintentional misstatement may be ineffective for an intentional misstatement that is concealed through collusion.
• B) An audit is designed to provide reasonable assurance of detecting material errors, but there is no similar responsibility concerning material misstatement due to fraud.
• C) The factors considered in assessing control risk indicated an increased risk of intentional misstatements, but only a low risk of unintentional errors in the financial statements.
• D) The auditor didn't consider factors influencing audit risk for account balances that have effects pervasive to financial statements taken whole.

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Definitions:

Private Networks

Networks designed for specific organization or group use, not accessible by the general public.

DMZ

A demilitarized zone in networking is a physical or logical subnetwork that separates an internal local area network (LAN) from other untrusted networks, typically the Internet.

Unlock

To make something accessible or available by removing restrictions or barriers.

User

An individual or entity that utilizes a computer system, software, or service.